Cryptocurrency Trading for Beginners – 5 Awesome Tips

Despite the market’s decline in 2018, predictions say that trading volume could jump by 50 percent this year. If you're a beginner in crypto trading, read our guide to make sure you're ready for the next market upturn.

Unfortunately, the party did not continue forever as the market promptly declined throughout 2018 and many of these overnight millionaire cryptocurrency traders lost their fortunes just as fast. Our dummies guide to cryptocurrency trading for beginners should help those looking to enter the market get a head start.

People Still Want to Trade Cryptocurrency

Thankfully, the lackluster performance of the market last year is not likely to deter investors from trading in cryptocurrencies which means opportunities to recoup the losses still remain in a future bull market.

In fact, a report by Satis Group predicts that crypto trading volume for 2019 is likely to increase by 50 percent.

For those gearing up for another year ahead, here are a few tips that might help you come out on top.

1. Don’t Stick to Bitcoin Trading; Learn to Diversify

The saying “don’t put all your eggs in one basket,” might be old but its advice still holds true when investing in cryptocurrencies.

According to TNW, diversification is essential as it could reduce overall risk especially if you invest in coins that service different sectors.

Diversification might even be a good strategy when it comes to the cryptocurrency exchanges you deal with – it may be better to utilize a number of exchanges instead of just focusing on one to handle all your trades. Don’t just stick to trading Bitcoin.

Customers of the Vancouver-based exchange Quadriga CX learned this lesson a little too late when they found out that they could no longer access their digital assets when the company’s founder Gerald Cotton – the only one who knew the key to the company’s cold wallet password – died in India last December 2018. Beginners to crypto trading learnt a hard lesson about what can happen if you keep your crypto stored on an exchange.

While diversification is good, overdoing it won’t help you achieve your investment goals.

By spreading yourself too thin, you might miss out on investment opportunities and fail to take advantage of the spectacular performances of a few coins.

This could result in your digital asset portfolio only doing as good as the overall market.

Beginner cryptocurrency traders were shocked at the losses from Quadriga CX

2. Cryptocurrency Trading for Beginners: Research Is Still Necessary

With the prevalence of ICO scams in 2017, crypto investors are now more cautious and seem to have learned their lessons.

These simple steps will help you get started with your research to ensure you are not investing in a scam or fraudulent project.

Cryptocurrency traders should always research the team. If a team member has a questionable past, investing is probably a bad idea.

Google the name of the coin plus the word “scam”. Are their reports of fraud? If so, steer clear.

Is the asset available on established, regulated exchanges? If so, it’s probably a safer bet than other assets and probably a better option for crypto trading beginners.

Is the coin’s GitHub updated regularly? There should be active development.

Are the team available to answer questions? A team which is unwilling to communicate with their community is usually a red flag and beginner traders should watch out.

Lean cryptocurrency trading for beginners tricks to avoid scams!

Of course, one way of steering clear from these predators is for investors to totally opt out of the ICO niche and stick to trading in more popular cryptocurrencies.

While their prices may still be volatile at times, you can be more assured that these tried-and-tested coins like BTC won’t close up shop soon and Bitcoin traders will always be safer, relatively, than those investing in small-cap coins.

But for those who want to brave the ICO waters and take advantage of potentially undervalued new tokens, researching these coins is still a must before deciding whether they are good investment opportunities. Always remember to read whitepapers thoroughly, you can usually find them in pdf format available for download.

3. Short Term Crypto Trading? Give Social Trading a Try

With the dozens of cryptos available for trading, the hard part is in picking which coins to invest in.

This is especially problematic for those who don’t have the time to keep track of all that’s happening to the market.

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Mark Jason Alcala is a journalist who is passionate about cryptocurrency, technology, and manga. He holds a BS Physics degree but decided to pursue a banking career that lasted for almost two decades. Recently retired, he is now rediscovering his passion for writing and has written for various publications such as the Inquisitr, Yibada, GamenGuide, MoviewNewsGuide, and Blasting News.

Infinitely curious and inquisitive, Mark has written articles that cover a diverse range of topics such as science, health, business, gadgets, games, manga, anime, tv, celebrities, and politics. After learning a bit about cryptocurrencies and the blockchain technology behind them, he is now hooked on these digital assets and their potential to uplift everyone’s quality of life.